QVC Sees 4 Percent Increase In Revenue In First-Quarter

We were on deadline yesterday and today on the big local election here in Montclair, so we didn’t have time to write up QVC’s first-quarter earnings yesterday. But here they are: Better late than never.

QVC’s domestic revenue increased 4 percent to $1.2 billion in the first quarter. Gross product revenue in the same period increased 5 percent as a result of strength in cooking and dining and apparel products.

HSN just reported a 3 percent gain in first-quarter sales.

“QVC demonstrated significant growth in revenue and adjusted OIBDA in the first quarter,” the $29.6 million-man, QVC president and CEO Mike George, said in a canned statement.

“Our customers are increasingly embracing QVC as a trusted shopping destination that offers engaging and interactive content, along with great value. Our early investment in mobile platforms is proving successful, and we are seeing rapid adoption as our customers around the world choose to engage with QVC on tablet and mobile devices,” he said.

QVC is part of Liberty Interactive.

The home shopping network’s U.S. revenue maintained a 4 percent increase overall due to an increase in first-quarter returns as a percent of gross product revenue of 127 basis points primarily due to the shift in mix to apparel. Average selling price (“ASP”) increased 4 percent from $54.83 to $57.01 and units sold increased 1 percent compared to the prior-year first quarter.

There was also a 9 percent increase in shipping and handling revenue as a result of price increases implemented in the fourth quarter last year.

In the first quarter, eCommerce revenue increased 13 percent to $481 million and jumped 39 percent from 36 percent as a percentage of total U.S. revenue.

Adjusted OIBDA increased 4 percent to $270 million and adjusted OIBDA margin remained flat during the first quarter. The adjusted OIBDA margin was impacted by a $4 million charge associated with reducing the number of order-entry personnel at the Chesapeake, Va., call center due to an increase in electronic ordering from customers

Here is what one of our posters had to say about that:

“How about summarizing Mike George’s new employment contract as included in the latest 10K filing as a comparison to the unfortunate 600 employees losing their jobs at their Chesapeake phone center.”

Not cool, QVC!

QVC’s consolidated revenue, which includes its international networks, increased 5 percent in the first quarter, to $1.9 billion.

During the same period, adjusted OIBDA increased 7 percent to $390 million and operating income increased 15 percent to $258 million.

This press release includes a presentation of adjusted OIBDA, which is a non-GAAP financial measure, for Liberty Interactive, QVC (and certain of its subsidiaries), and the eCommerce businesses together with a reconciliation to that entity’s operating income, as determined under GAAP. Liberty Interactive defines adjusted OIBDA as revenue less cost of sales, operating expenses, and selling, general and administrative expenses (excluding stock and other equity-based compensation) and excludes from that definition depreciation and amortization and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Further, this press release includes adjusted OIBDA margin which is also a non-GAAP financial measure. Liberty Interactive defines adjusted OIBDA margin as adjusted OIBDA divided by revenue.